GCT Semiconductor 2025 Q3 Earnings Net Loss Widens 94.5% Amid 5G Transition

GCT Semiconductor (GCTS) reported its fiscal 2025 Q3 earnings on November 13, 2025, with results underscoring a challenging transition phase for the company. Revenue declined sharply, missing expectations by $0.79 million, while net losses widened significantly. Management highlighted early 5G product revenue and production readiness, alongside $10.7 million in debt financing to support scaling.

Revenue

Product revenue declined to $148,000, while service revenue accounted for $282,000, bringing total net revenues to $430,000—a 83.5% drop from $2.61 million in the prior-year period. The steep decline reflects reduced product sales and service revenues tied to transitional project completions, though early 5G sampling contributed to top-line recognition.

Earnings/Net Income

The company’s losses deepened to $0.25 per share in 2025 Q3, worsening by 56.3% year-over-year. Net losses surged to $13.85 million, a 94.5% increase from $7.12 million in 2024 Q3. The EPS and net loss indicate a deteriorating financial position as losses widened significantly year-over-year.

Post-Earnings Price Action Review

The stock price of GCT Semiconductor has tumbled 9.93% during the latest trading day, has tumbled 8.63% during the most recent full trading week, and has plummeted 16.99% month-to-date.

CEO Commentary

John Schlaefer, CEO of GCT Semiconductor, highlighted operational milestones in Q3 2025 under the "Year of 5G" initiative, including the first 5G product revenue and successful chipset sampling with lead customers like Airspan, Orbic, and Gogo. He emphasized Gogo’s upcoming 5G deployment as a "first planned commercial deployment" and noted that early 5G chipset orders (2,500+ units) validate commercial readiness. Schlaefer underscored production readiness for Q4 2025 shipments, collaboration with manufacturing partners to expedite deliveries, and a strengthened balance sheet via $10.7M in debt financing. He expressed optimism about scaling production in 2026 and aligning supply chain logistics for volume growth, stating the company is "entering the later stages of commercial readiness" with "strong customer engagement" and a focus on efficient scaling.

Guidance

John Schlaefer confirmed Q4 2025 shipments of 2,500+ 5G chipset units to support initial aircraft installations, with production readiness aligned to meet Gogo’s launch timeline. Fong Cheng, CFO, reiterated breakeven adjusted EBITDA is expected in Q3 2026, driven by Q1 2026 sales ramp and improved gross margins from 5G revenue. Schlaefer outlined supply chain priorities: wafer fabrication lead times, testing efficiency, and PCB availability, with production forecasts positioned to mitigate potential shortages. The company remains on track for Q4 2025 volume shipments and anticipates scaling with 2026 deployments.

Additional News

GCT Semiconductor secured $10.7 million in debt financing from Anapass Inc., its largest shareholder, to accelerate 5G production readiness and mass shipments. The company also announced partnerships with Iridium Communications for non-terrestrial network (NTN) solutions and Giesecke+Devrient for IoT eSIM integration, expanding its 5G ecosystem. These collaborations aim to enhance connectivity solutions for satellite communications and headless IoT devices, positioning GCT to capitalize on emerging 5G applications.